Non-recourse loan concerns

[Kevin Kizer]

I'm struggling to see how I can reasonably leverage my self-directed IRA money in real estate investing. The non-recourse loan requirements of high interest, shorter term (max 20 years), 60% maximum financing, and requirements of a 15-20% buffer really limit my ability to make the numbers work in a deal. And if I want to refinance (like BRRRR), they only lend 60% of the actual cash outlay, not on the appraised value of the property. Am I not understanding something?

[George Blower]

@Kevin Kizer

If you are self-employed with no full-time w-2 employees, you can set up a Solo 401k which allows for investing in real estate. Unlike an IRA, there is an exception to UDFI for income derived from real estate owned by the Solo 401k and acquired with non-recourse debt.